jackson holere in with robert kaplan.rg television and radio. let's keep talking about the balance sheet. what impact do you think it will have on markets? when you blew up the balance sheet, asset prices rose. are going to see the same things happen in reverse? robert: here is what has changed. from the time i was observer in the balance sheet watching this to when we did it -- because i was not at the fed at the time, at the time the fed started to do qe and pythons, it was in the early stages globally of central banks buying more government bonds. we are now in a time today where we have in a norma's amount of liquidity. it's not just the fed. other central banks have participated in this. we have crafted a plan where -- we are not selling these securities. we are simply not replacing , andities as they come due we will do this in a phased in way. we have articulated that. market participants are well aware of it. we have not seen -- if anything and10-year have done this we do this in a way that minimizes the impact on

haidi: that was robert kaplan speaking with kathleen hays at jackson hole.ct when it comes to that jay y. lee trial. aboutak with the writer the rise of the samsung empire and the fall of its heir apparent. this is bloomberg. ♪ so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. announcer: from our studios in new york city, this is "charlie rose." charlie: bill gates and warren buffett are here. gates philanthropy focuses on -- warren buffett is chairman and ceo of berkshire hathaway. the two have famously been friends for more than 25 years. together they started the giving pledge in 2010, they donate it encourages the wealthiest two donate the bulk of their wealth to charitable

later today we will hear from robert kaplan.in jackson hole. -- will sit down with him in jackson hole. this is bloomberg. ♪ taylor: this is "bloomberg surveillance." i am taylor riggs. apple is making a new push to be in your living room according to people familiar with the matter. tvy will outline a new apple able to stream for gay video and news and sports. there is speculation rockwell collins may be moving closer to a deal with united technologies. bloomberg news reported that united technology has made an initial offer for rockwell collins. a challenge to boeing and airbus, make your new model able to sustain the longest route in the world. nonstop fromfly sydney to london, 18 hours. the new planes will be able to do that. that is your bloomberg business flash. david: in washington, tension continues to boil over between the white house and congress over the debt ceiling. president trump has been blaming the gop, calling out mitch mcconnell and paul ryan in a series of tweets. from our bureau in d.c., let's start with thi

we look at what esther george and robert kaplan said, it is not so much opposing views -- esther is moreonvinced it is trying to move that robert is saying let's be patient. though down the road, he thinks inflation will rise. where will janet yellen come on this in her opening remarks tomorrow morning -- just hours from now. a speech about financial stability, that doesn't necessarily entail talking about inflation and wages and all of that kind of thing, but if it talks about keeping rates below, too long and creating financial excesses that could create instability, i think people will start seeing -- not a new angle, but an angle that has not been in the center. the chairman of j.p. morgan chase international rates too low to long, you don't think you have inflation? what about asset prices? that is that argument. alan blinder said he would not raise rates until he sees clear evidence that inflation is rising. yellen, she janet has the opportunity to speak. fed chairs often deliver messages were they feel they are at a juncture to clarify. a.b. janet yellen is not there yet. they wil

president robert kaplan. robert kaplan. almost one hour into the trading i'm here at the td ameritrade trader offices. president robert kaplan. almost one hour into the trading steve, other than making me move stuff, session. squawk on the street continues in just a moment let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. see options data like never before. with thinkorswim only at td ameritrade. >> white house and donald trump's son-in-law jared kushner met with benjamin netanyahu today. he's part of a team looking to restart peace talks in the middle east. 8 people are still missing following a mud slide in the swiss alps the force of the rocks of the mud slamming into the small town was the equivalent of a 3.0 earthquake you're up to date. that's the news u

we also talked to robert kaplan earlier today on tv. ays asked kaplan about trade and what it will take to boost economic growth. t: i think global trade is an opportunity for the united states. i think a lot of the dislocations might have been because of globalization. today, it is more likely dislocations are incurring because of technology-enabled disruption and other structural factors going on, as well as cultural, where people prefer to live in urban areas. those are bigger dryers that glow was nation. my concern is, if we attribute these problems to globalization, we will make poor decisions. trade and immigration are examples. the trade relationship with mexico is a good example. 70% of u.s. imports to mexico are intermediate goods, not final goods. these are good going back and forth across the border that are part of sophisticated logistics supply chain management that have allowed u.s. companies to be more competitive and keep jobs in the united take that we didn't have those that -- that we did have before. if we didn't have

be patient, that is the message to the federal reserve from robert kaplan.re he thinks about hiking. draghiellen and mario speak in jackson hole next week . jim, we had these comments from robert kaplan. we assess over every comment. fluxolicy that much in that we do not know which way it could turn? what the idea is. with the economy doing well and unemployment low, inflation is not where they wanted. it is not a surprise they want to be patient. the problem is, policy rates and interest rates are artificially low. the economy has gotten back on its feet. history tells you the problem is, once we get back on our feet , we veer off the road again. one of the reasons, we get policy rates at the not the right level. the president of the federal reserve bank of austin has made the case, when you have an economy like this it is better to get policy rates back to normal so we don't cause problems that we may not be aware of today. that thereurprising are mixed views at the fed and some want to be patient. inflation is the ultimate goal of the central bank. you ha

guest lineup you'll hear from kansas city fed president, esther george, dallas fed president, robert kaplanand jay powell tomorrow janet yellen and mario draghi >> kaplan. i say what >> kaplan. >> done. >> i'll try to correct that for you next time. >>> federal regulators say they don't plan to block amazon's $1 billion deal to buy whole foods. the federal trade commission making that announcement whole foods slightly higher. interesting numbers from uber, reporting a 16% jump in quarterly bookings it posted a loss of $645 million, that's a 9% smaller than the loss in the first quarter. trip requests from riders more than doubled over the past year. the positive financial results come amid a slew of corporate scandals for uber, including a legal battle between benchmark capital and its former ceo travis kalanick. >>> lockheed martin and ratheon will work together to create a new cruise missile then the pentagon will choose a single krancontractor for engineering, manufacturing and deployment of the missile. >>> facebook reportedly picking andrew bossworth to lead its consumer hardware repor

we will hear from robert kaplan. that interview at 9:00 a.m. new york time. let's check in on the news with emma. the commander of u.s. and nato forces as the influx of american soldiers to afghanistan will continue. the move of u.s. troops will train afghan security forces. the pentagon is likely to spend about 4000 troops. a hurricane warning is issued for parts of taxes on the gulf of mexico --texas on the gulf of mexico. tropical storm harvey could become a hurricane by tomorrow. texas has not been hit by one since 2008. oil workers are leaving platforms and airlines are preparing for disruptions. china is accusing the u.s. of sabotaging the international trading system and will defend its interests and necessary. at issue is the u.s. investigation into china's intellectual property practices. the trump administration will determine whether china's actions in areas such as technology transfer are unreasonable or discriminat ory. migration has fallen to a three year low in the u.k. 81,000 from the year earlier. global news 24 hours a day powered by more th

just listen to esther george and robert kaplan speaking to us in the last 24 hours or so. you look at our wirp function probability of a rate hike by the end of the year, 50%. which will win through when it comes to the likelihood of another rate hike this year? andrew: this is such a difficult question right now in the december rate hike. i absolutely agree it is entirely dependent on inflation. i think we have to be extremely humble. this is something we do a very poor job of forecasting. i think anyone who has tried to forecast it would admit that. it is not like economic growth we of business cycles and you know what you are in the cycle and if you are in the upswing or downswing. this is something that has been in secular decline for decades. when we look out to december and we kind of do a bottom-up forecast around inflation, we see enough strength in some of the underlying components that we think we might just get there, and that is our probability of a rate hike by december right around 50% so i think this is a you have to be watching the data. if the inflation da

vonnie: that was the dallas that will reserve chairman robert kaplan speaking with kathleen hays. a brexit backer going into more of thejohnson, significant climbed out of the league campaign. as is bloomberg. ♪ ♪ vonnie: live from bloomberg world headquarters in new york, i am vonnie quinn. mark: i am mark barton with the european close eight minutes away. boris johnson softening his brexit. another brexit supported making acknowledging the u.k. will have to pay to leave the eu. he said we will meet obligations and keep in mind that this -- after saying the bill was extortion. chief is here.au >> he said the eu could go whistle if it thought it would get any money from the u.k. with brexit. he said today, he really meant they wanted 100 billion euros. he is falling into line. it was a silent summer for him. we were wondering what he was thinking. saying that a transition would be ok, others were saying but he was silent. we do not know if he was planning a leadership bid. he said a transition of one year, two years, three years is fine. united?e cabinet is >> to an extent, chance

describing how that would happen and the approach that the committee would take >> dallas fed president robert kaplan expressed a more dovish tone highlighting inflation as a cause for concern for the committee. >> the issue is about inflation. i think we're really trying to weigh the conflict between the cyclical factors which should be creating more inflation, though with a lag, and structural factor facto factors like globalization and technology that are muting pricing power of businesses i'm not saying that we won't act by the end of the year i just want to be -- i think we have the ability to be patient here and see more -- see how these forces unfold. >> the symposium pitts fomc hawks against the committee's many centrists and doves ♪ >>> all this week we've been talking about alternative investments. how gold, wine, art and bitcoin can help boost a portfolio now we look at how antique musical instruments have become an attractive alternative asset. here to explain is nigel brown, founder of the stradivari trust. thank you very much for coming on the show. explain what you do. what is the stra

and then we hear from robert kaplan and neel kashkari.eak," 10 years ago this week, bnp paribas told investors they would not be able to hold their investment funds. ensued, but issuit the world a safer place? this is bloomberg. ♪ manus: it is 8:19 in berlin. what a beautiful shot of brandenburg gate. angela merkel took a three-week holiday, setting herself up for a 50 then you tour, as he gets to count down to election 2017 germany. we are counting down as well. every monday we have a program focusing on the german election. futures are lower. ahn has your business flash. snap has fallen short of estimates, feeding fears that aggressive competition from facebook is blunting the social media company's potential just months after the initial public offering. the parent company says daily active users reached 173 million in the second quarter. revenue disappointed and the shares tumbled in late trading. google u.k. has won approval to build a campus alongside the company's existing offices in cakings cross. the building will be the european

but nobody really put a number on that robert kaplan saying it's closer to two than three is a significantnge in the sense that median long term rate for the fed in their own forecast is 3% and there's only one person that is 2 1/2%, serve above tlachlt is a sense that they have to all come down in the outlook for how far the fed thooz has to go in e rate hikes ka kaplan wants o see more progress before raising rates again he wants to reduce the balance sheet soon we have to monitor this as to whether or not the long term rate for fed oeflz and where they think the funds rate is going it closer to 2% than 3%. sarah? >> i ghaes would have implications for how many times they raised rates and how fast thank you. >> and fixed income markets and the sense where the two year ought to be correctly priced. >> our steve liesman following the fed. for more, let's bring in mike kiesel, managing director of global credit at pimpco to talk about this market. we've bun talking about how calm the credit market has been clearly it's reacted to the heightened volatility this week. do you see any big signs

kathleen hays says robert kaplan calls for patients. >> you have to adapt to reality.faith that inflation may get back to its 2% target. you have to understand that historic cyclical forces in the models that would have suggested what the cyclical forces, what the impact they should have are being offset by a new force, would you can understand mainly by looking at industries and companies and talking to ceos. i think those are having an immediate effect on inflation. it is not black or white. weis that we may well find can run a lower level of in order to build be cyclical forces to overcome some of these structural headwinds we face. it is more that we have got to adjust and adapt. there is a lot of talk in japan, people walking the bank of japan saying, the 2% target is realistic. why don't they give up that target and adaptive lower target? is that something be fed to consider? >> i say no. we have a history in this country and we went through in the great depression and japan is concerned about it. it is deflation. high inflation is not something you want. you als

industrial production data for july and we hear from robert kaplan speaking time.as at 1:00 eastern all through the day, we are all going to be focused on washington and the aftermath of the collapse of the president's very is leadership councils. kevin cirilli joins us with the latest. what happened? kevin: the president this banded two of his ceo council and forums, tweeting the news after a trip, drip, drip of resignations from the board from top level ceos. everyone from under armour come merck, under armour to kenneth frazier the first one to distance himself. that said, republicans on capitol hill have also been quick to distance themselves from the administration for the president's response this week during the press conference in new york regarding charlottesville. lawmakers still trying to get some type of policy initiative done. republicans gathered in california to discuss tax reform and that -- negotiations are underway here in washington. all of this comes as the president earlier this morning disdain foreeting the media including senator lindsey graham and senator jeff fl

we have robert kaplan speaking in texas saying inflation is running below 2% of the target.speech today rather than yesterday, with his beach have been different? mike: no because they see everything through the filter of a phillips curve. it is broader than just employment. they're looking at overall slack in the economy. overall, our model say inflation should start to rise. and which should be seeing inflation rising. the only problem is that inflation is not rising. it is decelerating. how do you figure that into your calculations? they are not raising rates because they want to head off inflation. even if they are correct, and we did see inflation go to 2%, that is what they want. they are raising rates for they want to have a margin of error when the economy turns down. but the markets are saying no, you cannot raise rates because you need to boost inflation. they are caught here. and carl says they need to redefine how they are looking at it and what they are doing. they are raising rates to create that buffer for downturn, they may need that buffer because economy is

coming up later this week on we are in jackson hole and we will be speaking to robert kaplan. to go through to figure out what happens to treasuries next. this is bloomberg. ♪ francine: this is "bloomberg surveillance" and i'm francine lacqua in london with david gura in new york. the sun conglomerate has got plans to purchase a land plot in london amid beijing's growing scrutiny over overseas investments. been restricted from investing in certain sectors. richard, how much does this have to do with some of, i guess, regulations put in place by china last week, which is once again, trying to prevent outflows by limiting how much their domestic companies can invest in a broad? >> if you go back one year ago, one of the big risks facing them was a hard landing in china and a big depreciation valuation of the renminbi. you have seen consistent data showing chinese growth is holding at much better than most people expected. last week the imf upgraded the gdp forecast, closer to 7% than 6% over time. the chinese productivity has been incredibly productive, limiting upload, reducing

coming up later this week -- a strong lineup of fed voices including robert kaplan.. ♪ alix: small caps have been rolling over and into an interesting story. this is s&p many futures, the blue line. the rest of 2000, the white line. anything below the red line is short and above is long. divisions very short when it comes to the rest of 2000. with us is a mike wilson of morgan stanley. how much more pacifism to be done -- has a missile to beat -- how much more pessimism to be done? mike wilson: we took off the two-year average and i watch it. it is almost self fulfilling. as i like to say, breakdowns and breakouts are for suckers and that's where you want to take a step unless something changed. unless something changed, it is signifying something meaningful. weaving taxes are not on the table and that is the main reason the small caps have underperformed. the strong dollar has been a headwind for small caps. where it will drive small caps in the second half of the year if they hold our earnings. weaving access to capital, m&a, allpending and the things tend to benef

guests lineup of said including robert kaplan and loretta mester.we talk about the bond market after we have had over $1 trillion worth of u.s. credit come into the market. from new york city, you are watching bloomberg daybreak. ♪ got you outnumbered. the dinosaurs' extinction... don't listen to them. not appropriate. now i'm mashing these potatoes with my stick of butter... why don't you sit over here. find your awesome with the xfinity stream app. included with xfinity tv. more to stream to every screen. ♪ andthan: global stocks drop havens rally after a terrorist attack in barcelona. unease about u.s. policy paralysis. hazard -- hasate claimed responsibility for the attack in spain. the white house, talk of a need for radical change. this is bloomberg daybreak. i'm jonathan ferro, alongside it david west in. alix steel is on assignment. a big loss in the united states. the biggest loss since may. futures up 1/10 of 1%. down,llar is on the back the euro advancing 1/10 of 1%. treasuries, yields up a basis point. 2.19. that is your across asset sto

starting today and through the week we hear from presidents bill dudley and robert kaplan. on inflation with the cpi numbers. joining us now is gina smiley. welcome back. speak --on the fed what will he be looking for? we have the numbers coming out. a lot of people got hired. they have to get the numbers up higher so what are we looking for? the way thew from fed functions is that they will not preview december yet but what we might see is continued confidence that they will see inflation move up on the back of the employment numbers. numbers withment wages coming and inflation is coming so we may hear that. on the balance sheet, we may hear a little bit of chatter. theirre still playing cards close to the chest but we saw last week that we have clear signaling that it is coming. david: what about cpi numbers. what are we looking for? what might make a difference? a: it is hard to overstate how important these numbers are. they will be looking at the long trend. and then indexes like apparel, you will be looking for revision there. that will give them confidence. caroline:

esther george, kansas city fed president robert kaplan, and the cleveland fed president.e from new york, this is bloomberg. ♪ ♪ taylor: this is "bloomberg daybreak" i am taylor riggs. the battle foron oncor electric. they've agreed to by the texas utility for almost $9.5 billion. it is another sign that m&a activity in the energy sector is picking up after a long downturn. total agreed to buy marist order -- oil and gas. assume $2.5lso billion in debt. they say they are ready to make acquisitions to growth production. -- interested in buying fiat chrysler's jeep division. they didn't say whether the companies have begin negotiation. inysler already makes jeeps china with a local partner. in, chair yellen out. the last poll shows two thirds said chair yellen would not be renominated as the head of the fed and 49% of those economist told gary cohn as the front runner to lead. also in contention -- loeyswith us is jan and michael mckee. some of the rhetoric is gary cohn didn't leave the white house despite pressure because he really wanted the fed job. is that some thing tha

bankers head to jackson hole been well we are watching, and interview with dallas fed president robert kaplanrio draghi. >> i think his these may be more important than janet yellen that his speech may be more important ian's janet yellen been >> will be paying more attention to mario draghi. yellen not expect janet to be seen -- saying anything. jonathan: joining me is michael mckee. you have spoken to esther george, the host of jackson hole. what is the tone of the moment? the anticipation for tomorrow towards janet yellen or mario draghi? economist, i will take both sides of the argument. mario draghi's may be more interesting in that he bluntly, more directly -- he speaks more bluntly and more directly, something people are interested in. he could talk about the ecb withdrawing stimulus and make the argument, even if he does not provide details for tapering , it is time to get out of the stimulus business and start ratcheting it back. janet yellen academically and talk about financial stability and how the markets are overpriced, which would get everyone's attention. that is not her style

city fed president esther george at 7:30 al a.m later in the day, steve liesman will speak to robert kaplan, glenn hubbard, and tomorrow speeches by janet yellen and ecb president mario draghi i mean, we said it's the woodstock for bankers. i think it just speaks -- i question whether it was really like woodstock you see those speakers it is like hendrix >> were you a woodstock guy? >> no. my parents would not have let me go >> i don't know how old you were making your own decisions at that time. >> no, no, no. do you know what was going on there. >> i heard that's why i asked >> you know what they say? if you actually were there, you don't remember >> you wouldn't talk about it. >> they say that about the -- they say that about the '60s too. you don't have the brain cells left if you were there to remember that i were actually there. >> joining us on set are phil orlando from federated investors and scott nations, president and chief investment officer of nation shares a cnbc contributor. welcome to you both. scott, i was trying to see if your account lined up with andrew's the financial c

today we will consider the nomination of governor kaplan to be secretary of trade, the assistant secretary legislation of health and human services, and robert to service undersecretary for health and human services. i would like to extend a warm welcome to each of these nominees and extend congratulations to each of you for your nomination so thank you for your willingness to serve in these important positions. in today's hearing come i want to stress two major things -- integrity and responsiveness. these are both important elements to any position in government, particularly for senate confirmed positions. they are absolutely essential for positions under the review today. the undersecretary of commerce for international trade is responsible for promoting american trade around the globe. and enforcing u.s. trade laws. wouldfirmed, mr. kaplan need to be a strong advocate for american exporters while holding our trading partners accountable for improper trade practices. there is a good deal of work that needs to be done to improve in anti-dumping and countervailing laws. that mission should not come at the expense of seeking to expand oppor